Summary: S.2067 — 100th Congress (1987-1988)All Information (Except Text)

There is one summary for S.2067. Bill summaries are authored by CRS.

Shown Here:
Introduced in Senate (02/17/1988)

Farmer Fuel Tax Relief Act - Amends the Internal Revenue Code to prohibit imposition of the excise tax on the sale of diesel or aviation fuel to any purchaser (or purchaser for resale to a second purchaser) for use on a farm for farming purposes. (Although fuel sold for these purposes is tax-exempt under current law, provisions of the Revenue Act of 1987 require purchasers to pay the tax and subsequently apply for a refund based on nontaxable uses of the fuel).

Permits wholesale distributors of gasoline who have registered with the Secretary of the Treasury and posted the required bond to pay the gasoline tax (in lieu of the person otherwise liable for the tax).

Prohibits imposition of the gasoline tax on the sale or removal of gasoline by any person (or for resale to a second person) for use on a farm for farming purposes.

Requires that the reduced gasoline tax rate (3.4 cents instead of 9.1 cents) be applied with respect to gasoline used to produce gasohol after the time of the relevant removal or sale.